Life insurance is easier to obtain than ever before. Despite the high level of accepted clients, there are still those who are initially denied coverage. As you study companies to discover the best life insurance agency for your needs, keep these top reasons for denial in mind.
- Low or No Income: You will be denied life insurance coverage if you can’t afford to own it. Consider reducing the benefits amount or making other adjustments to make the plan more affordable.
- Alcoholism: If your health history identifies a significant alcohol problem, life insurance companies will not take the risk. Those suffering from alcoholism, specifically elderly applicants, have a much higher risk of death – a top reason for coverage rejection.
- Drugs: Illegal drug use is a huge red flag for life insurance companies. Even marijuana use, which is gaining traction in some states, is cause for denial. Most insurance providers don’t want to cover someone who engages in recreational drug use, similarly to that avoidance of covering alcoholics.
- Liver Problems: A major health issue with your liver is often an indication of a very serious medical condition. If your liver is working overtime or struggling to function at all, most companies will pass on your application. There are rarely signs of liver malfunction, so getting a medical exam first will give you insight into potential problems.
- Blood in Urine / Stool: While blood in your urine may be a sign of excessive exercise, it can also be an indicator of a major medical issue, like kidney disease. Before a company will offer life insurance, they’re likely to request further medical exams to determine the cause.
- High Cholesterol: Even if medication keeps your cholesterol levels stabilized, the condition still points to a future heart attack, stroke or coronary artery disease. Lower the LDL and increase HDL cholesterol levels to gain life insurance coverage.
- Obesity: A significant amount of extra weight is a fast way to get denied by insurance companies. Those who are 100 pounds overweight, especially in older years, are considered a very high risk and typically denied because of being labeled morbidly obese.
- Dangerous Hobbies: Living life on the edge can make vacation more exciting, but life insurance companies are usually not big fans. If skydiving, extreme sports or rock climbing are your idea of a relaxing weekend, you can plan on being denied life insurance.
- Bad Driving Habits: Your driving record speaks for itself when it comes to obtaining life insurance. If you have several wrecks, speeding tickets or DUI charges, you’ll likely be denied coverage. Groups most affected by the driving record rule are the youngest and oldest of applicants.
- Occupation: Dangerous jobs – logging, fishing, law enforcement, electrical, ranchers, and others – are considered major risks for life insurance companies. A risky job partnered with old age or other health issues will most likely deter companies from offering you coverage.
If you recognize one or more of the above factors that could apply to you, address the issues before applying for a life insurance policy to better your likelihood of gaining coverage. Contact our team today, our agents are ready to discuss the different options that are available to you, regardless of your situation.